CGT on transferring IP into a trust while living in OZ?

[sparxNZ]

Hi All,

Just wondering if anyone can help me out on this one - I moved to Australia 4 years ago. Since then have purchased two properties in NZ and would now like to place them in a trust along with my defacto partner's assets which are mainly cash.
We are both australian tax residents obviously, my question is if I were to transfer the properties now would I be liable for capital gains tax to the ATO?

Also, can someone recommend an accountant who has good knowledge of both the NZ tax system and the AUS tax system? You'd be amazed how hard it is to find one of those guys despite how many expat kiwis there are getting around here in Brisbane

cheers
sparx

[mlrose12]

I do know someone BUT....he is NOT cheep.
He will get you to where you neeb to be

Hi All,

Just wondering if anyone can help me out on this one - I moved to Australia 4 years ago. Since then have purchased two properties in NZ and would now like to place them in a trust along with my defacto partner's assets which are mainly cash.
We are both australian tax residents obviously, my question is if I were to transfer the properties now would I be liable for capital gains tax to the ATO?

Also, can someone recommend an accountant who has good knowledge of both the NZ tax system and the AUS tax system? You'd be amazed how hard it is to find one of those guys despite how many expat kiwis there are getting around here in Brisbane

cheers
sparx

[mlrose12]

I do know some one...BUT...he IS NOT cheep
He can get you where you need to be

[ChrisEdwards]

I hope you find some reliable accountant that can sort out your problems.

[Guest]

You do not need to wonder.You can contact us to find information about property laws.Satisfaction of customer is our first priority.

[ale]

Hi All,

Just wondering if anyone can help me out on this one - I moved to Australia 4 years ago. Since then have purchased two properties in NZ and would now like to place them in a trust along with my defacto partner's assets which are mainly cash.
We are both australian tax residents obviously, my question is if I were to transfer the properties now would I be liable for capital gains tax to the ATO?

Also, can someone recommend an accountant who has good knowledge of both the NZ tax system and the AUS tax system? You'd be amazed how hard it is to find one of those guys despite how many expat kiwis there are getting around here in Brisbane

cheers
sparx

Hi,

I know it's some time ago but have you sorted out Trust issue?
I am living in nz and currently exploring an option to move to oz some time near future. I have a few IPs under own name and don't want to sell them when I move to oz. If I understand correctly they will be subejct to CGT when eventually sold if I become a resident as tax purposes in oz. Anyway to get around this? Would setting up a trust and put them in trust would be good enough to avoid CGT? I heard even you set up a trust if you are a trustee or beneficiary it could still be tricky?

Any comment would be appreciated.
Or any oz based accountant who might give me a good advice on this matter.

Cheers

[sparxNZ]

Any comment would be appreciated.
Or any oz based accountant who might give me a good advice on this matter.

Cheers

Hayden Rooney from Reef Accountants in sunshine coast for your AU tax returns.
(07) 5446 1177

Ask him for his father's contact details, his old man has an accounting business in NZ (Christchurch)

Pretty sure you would be in the clear if you transferred your IPs into a trust before you became a tax resident in AU.
Just be aware you'll have to get a valuation on all of them and there will be a tax bill for the depreciation you claimed on your buildings and possibly chattels.

I moved to AU in 2008 and back here again last year - one of the primary reasons for moving back was because I intended to sell two IPs so I moved back in July (start of AU financial year) and I'm waiting until it's absolutely certain that the ATO could not possibly claim that I am still an AU tax resident before I sell.
If I had held in a trust I wouldn't have this problem.

Cheers
Matt

[ale]

Cheers Matt.
Have emailed Hayden.

Which part of NZ are you in? I wonder if you don't mind a quick chat over the phone... you can PM me in case.

[ale]

Hayden Rooney from Reef Accountants in sunshine coast for your AU tax returns.
(07) 5446 1177

Ask him for his father's contact details, his old man has an accounting business in NZ (Christchurch)

Pretty sure you would be in the clear if you transferred your IPs into a trust before you became a tax resident in AU.
Just be aware you'll have to get a valuation on all of them and there will be a tax bill for the depreciation you claimed on your buildings and possibly chattels.

I moved to AU in 2008 and back here again last year - one of the primary reasons for moving back was because I intended to sell two IPs so I moved back in July (start of AU financial year) and I'm waiting until it's absolutely certain that the ATO could not possibly claim that I am still an AU tax resident before I sell.
If I had held in a trust I wouldn't have this problem.

Cheers
Matt

Hi Matt,

Just wondering if you have sold those two IPs in NZ, and no attention from ATO?

Thanks

[ale]

From my conversation with Hayden from Reef Accountants, if I come back to NZ after a few years in Aus etc, CGT would still apply. For the gain in value from the date I become a tax resident in Aust.

There seems to be no way out of it. Also Aus tax is currently higher than NZ ones.

[ale]

I had considered a trust, but the advice I had was to be very careful in terms of connection to yourself or control of trust.

Plus additional admin work involved in & hassles of dealing with banks etc as a trustee or the director is not something I am looking forward to.

How is everyone doing it?

[ale]

I do know some one...BUT...he IS NOT cheep
He can get you where you need to be

Do you have contacts?
Would this be setting up a company/trust structure?

Thanks

[wikigrewal]

I have a question !

1. If I hold multiple IPs in NZ and move here for few years as a Australian Reisdent, how will the ATO know that I even have those IPs back in NZ.
2. If I take the risk of declaring my NZ IPs to ATO , can I claim full depreciation (plant and equipment) on them against my Aussie tax income?
3. I think unless you declare your IPs , ATO won't know if u SELL the IPs .
4. Isn't NZ citizens living in Australia still classed as Temporary Residents for tax purposes?

thanks